tv Special Report With Bret Baier FOX News November 22, 2011 1:00am-2:00am PST
bill schulz, jaime weinstein. i'm andy levy. greg is back tomorrow. that's really all i got. >> bret: good evening again. i'm bret baier. this is "special report." members of the bipartisan deficit reduction committee announced an hour ago they reached stalemate. moments ago, they saw president obama weighing in. democrats refuse to cut spending without tax increases. republicans rejected the democrats tax hikes. that means the prospect of automatic cuts loom larger tonight. chief congressional correspondent mike emanuel is on capitol hill with the latest. good evening. >> good evening, bret. after the market closed the co-chairs of the congressional super committee ende ended the panel's work writing "after months of hard work and intense deliberations we have come to the conclusion today it will not be possible to make bipartisan agreement available to the public before the committee's deadline. moments ago, president obama
made it clear he intends to keep the pressure on congress. >> my message to them is simple. no. i will veto any effort to get rid of those automatic spending cuts, domestic and defense spending. there will be no easy off-ramp on this one. we need to keep the pressure up to compromise. not turn off the pressure. the only way these spending cuts will not take place is if congress gets back to work and agrees on a balanced plan to reduce the deficit by at least $1.2 trillion. >> in the end, what many said was destined to fail did. after countless small group meetings and capitol hill hide-aways the congressional super committee was unable to reach a deal. for much of the day democrats and republicans suggested a glimmer of hope. republican sources say senator john kerry tried to make a
time offer that would have included $1 trillion in tax hikes but didn't have the buy-in of other democrats. before the end, kerry spoke of the deadline pressure. >> there is a time limit on us, that is coming down to hours, because the, there has to be a filing 48 hours ahead of time. we're under a gun. >> the bipartisan 12-member panel had been trying since september 8 to find $1.2 trillion in savings but it had been a struggle. this morning, republican jon kyl made the morning show rounds not ready to declare failure but giving a last pitch for the party view. >> republicans put the only new idea on the table here. we put the breakthrough proposal on the table. for tax reform. and we got nothing but rejection from the other side. >> this is not finger pointing. this is simply saying that we are stuck because we do not believe that the wealthiest people of america ought to get a huge tax cut when we are supposed to be doing deficit reduction.
>> senator jeff sessions says obama deserves some of the blame. >> commander-in-chief is absent from the battle. he needs to be leading from this. if he had told the debt committee the 12 he wanted an agreement, we would have had one. >> there are certainly national security concerns. late today, south carolina republican senator lindsey graham joined west virginia democrat joe manchin in calling on president obama to embrace his own deficit commission, the bowles-simpson plan. the ro pose sal $4 trillion in cuts. graham says he will urge congressional leadership to bring that plan up for a vote. bret? >> mike emanuel live on the hill. thank you. the crash and burn of the sub committee means congress will have to pick up some o the pieces. and do in a hurry. chief washington correspondent james rosen looks at what lawmakers have to do and when. >> here we sit at the end of
the congressional session and the highest profile committee is a failure. they abandoned the hunt for the $1.2 trillion of cuts but vehicle for slew of other legislative pressing items. the deadline for these priorities unlike the super committee won't just go away. first, congress is only approved three of 13 annual spending bills. the continuing resolution passed last week only keeps uncle sam in business through december 16. >> the lack of progress in the super committee will spill over to everything else. it is going to affect the mood in congress. it is going to affect the schedule. failure usually breeds failure. success breeds success. >> the end of 2011 means rejoining of the annual battle. over the yearly infusion of cash to prevent medicare physician suffering a huge cut to their fees and the yuletide favorite, patching of the alternative minimum tax to exempt the middle class taxpayers from a hike in their tax bills.
congress must also create tax extenders for research and development credits for business, depreciation write-off for the company new purchases and the payroll tax cut part of the president's stimulus package. >> republicans held the line against raising taxes. they see that as a big advantage for them next year. and democrats held the line on issue of fairness and equity, which they believe is a big issue for them. essentially the issues that torpedoed the super committee will be the very heart of the 2012 election. voters get to make the deciding call. >> with both houses of congress only likely to work another two weeks this year, lawmakers will also face pressure to renew expiring benefits for the unemployed. over that and any other pending items looms the super committee defining committee; namely, how will it all be paid for? >> bret: a big question, james. thank you. senior political analyst brit hume is here with thoughts on why the super committee was a super bust.
good evening. >> hi, bret. the failure of the super committee has been widely attributed to the partisan stalemate. the problem is less partisan than ideological. the battle over spending and debt is fought along the deepest fault line in american politics. republicans believe deeply that raising income tax rates for anybody including the wealthy is economically dangerous and politically suicidal. the sides wouldn't raise enough money. democrats with equal furlough, cutting the entitlement benefit to attack the crowning achievement of their party's driver for social justice. nancy pelosi is opposing any cut. super committee was only supposed to develop a plan to lop off an eighth of the projected deficit in the next ten years. surely you think they could split the difference. get a deal.
you can get the politicians to buck the base in a national emergency. but ballooning national debt is a crisis but neither the politician nor the public seems to see it as an emergency. >> bret: thank you. stocks were way down today in apparent anticipation of the super committee collapse. the dow lost 249. the s&p 500 dropped 23. nasdaq off 49. home sales were up slightly. 1.4%. total remain a million below what would be considered healthy. the trustee overseeing the bankruptcy of the wall street brokerage mf global says amount of missing consumer money, customer money may be around $1.2 billion. that is double initial estimate. regulators are investigating if they took money from client account to cover the trading losses. carl cameron reports that newt
gingrich welcomes it. today unveils the plan on the political salvation. >> newt gingrich has entitle reform package. he says the private investment account would create more saving and strengthen the system. >> you make it voluntary. if you don't want to do it, don't do it. if you are dumb enough, you prefer to get less money and less control relying on politicians. that is your prerogative. you are an american. you are allowed the be dumb. >> he pledged to repeal or replace obamacare, offer private alternatives to medicare and means test and block grant to the state a host of social welfare program including medicaid. >> eliminate all the layers of the bureaucracy in washington. basically say here is your amount of money. you figure out how you want to helpt people in your state that are poor. >> earlier, gingrich praised demise of the deficit reduction talk by the congressional super committee. gingrich led the charge against the committee among the g.o.p. presidential hopefuls starting in august.
>> i think this super committee is about as dumb an idea as washington has come up with in my lifetime. >> he repeated what he predicted since the committee was founded. >> i think it's going to, and i think it should because it's exactly wrong. >> romney was campaigning in new hampshire, too. hoping to slow the recent gingrich games in the granite state. romney announced the endorsement of senator kelly this weekend and romney looked past gingrich to accuse the president of worrying more about his re-election than the debt crisis. >> instead, he has been out doing other things. campaigning and blaming and traveling. this is inexcusable. like a trap has been set rather. we can cut the military even more! >> romney decided to launch his first tv ad of the 2012 ris. back this time four years ago, romney spent millions on ads
about the fellow republicans for the nomination contest. this time around, true to form, ignoring the g.o.p. rivals an slamming president obama for campaign promises already broken in the oval office to get nation fiscal house in order. >> bret: carl, thank you. governor rick perry will be the guest shortly and sit in the center seat and take questions from the all-star panel. stay tuned for that. also coming up later, more pressure on iran over the alleged desire to build the nuclear bomb. up next, suspected terrorist is accused of building a
>> bret: an american citizen who converted to islam was said to be an hour away from completing work on pipe bombs when he was arrested over the weekend. correspondent laura ingle reports on the latest terror plot against new york city. >> universities in new york say jose had no formal ties to al-qaeda. so he has been described as a sympathizer of the terror
group. he was arraigned last night in new york city. charged with providing support for an act of terrorism, conspiracy and weapons charges. >> there is nothing physically -- [ inaudible ] about this whatsoever. >> they say he was motivated by terrorist propaganda and resentment of the u.s. troops in afghanistan and iraq. and that they moved in on him over the weekend, because he was ready to carry out his plan. >> he talked about changing his name to usama hussein to celebrate his heroes usama bin laden and saddam hussein. he talked about killing u.s. service men returning from iraq and afghanistan. >> police release this video as a news conference announcing his arrest demonstrating the damage to pipe bombs he allegedly was building could have done. the 27-year-old lad been under surveillance since 2009. investigators say he was energized and motivated to build pipe bombs after muslim
cleric anwar al-awlaki was taken out by a drone attack in yemen. his mother along with the other relatives and neighbors will expressing shock that he had such devious plans. she talked with reporters today about her son calling him a normal guy. [ inaudible ] >> the nypd tried several times to involve the f.b.i. on this case. the f.b.i. concluded that he didn't have the predisposition or the ability to carry out the crime. he has been held without bail and will be back in court november 25. >> bret: former f.b.i. director will head an investigation in conduct of university personnel in the penn state child sex scandal. former assistant football coach is accused of abusing eight boys.
the scandal led to firing of president and coach paterno. doug mckelway has another story. >> en route to the home district, kilmeade denied allegation he sexually abused a second cousin while at sacred heart university. >> no truth to this. >> in the statement, the 82-year-old, 18-year congress called the allegation false and shameful. saying it's a converted effort by distant relatives, two of whom have history of mental illness and run-in with the law to lie about something that never took place. the alleged victim presently resides at undisclosed psychiatric institution. in an interview from flint, michigan, the accuser recounted a congress with the congressman years after the alleged abuse.
>> i get in the car and we start driving away. i said dale, i got to tell you, you have no idea of what i've been through because of what you did to me. he said "patrick, every year i make a general confession. and he said that is first thing on my list every year. i keep confessing it. every year. he says you have no idea how much i suffered for what i did to you." >> under michigan law there is no statute of limitations for first degree sex offense. threshold defined by penetration. the accuser has not detailed the specific alleged act bus maintains that took place over five years period when he was 12 years old. congressman kilmeade announced his retirement. among his duties is overseeing the congressional page program and serve tong early childhood committee. congressman kilmeade maintains the charges may be motivated by blackmail and says he wrote formal report to the f.b.i. years ago when one accuser
>> bret: violence in egypt tops the world headlines tonight. security forces clashed again today with several thousand protesterers from cairo tahrir square. 24 people have been killed in three days of violence. protester december mand they hand over power to a civilian government. a few hours ago they submitted the resignation to the council. spanish voters kinged out the
socialist government in favor of conservatives. stalled economy. and a 21.5% unemployment rate spelled grubbing defeat. back at home, the obama administration tightening the financial screws on iran. wendell goler reports on the new measures over the country's nuclear program. >> they announced restriction to sale of the oil industry. >> we will sanction technology to the sector. to accompany the measure we'll launch worldwide diplomatic campaign to encourage other countrys to shift any purchases of iranian petro chemical products to the other suppliers. >> it amounts to warning that company should wind down business to the bank. short of what the republican
senator would like. >> the best effective nonmilitary sanction is to collapse central bank of iran. >> they worry it could slow recovery. blacklisting it could affect trade with china. the chinese president and the russian president made clear they would not support new u.n. sanctions on iran. so the u.s. is abouting with other allies. britain announced it will cut off ties with the iranian bank. canada is expected to follow suit. >> the efforts that we have undertaken to further isolate iran with our international partners we believe will pressure the regime. drive it to the conclusion it needs to get right with the world. >> the years of every-tightening sanctions the country hasn't given up the
nuclear ambitions. former ambassador bolton suggested ultimately the only option may be military. >> the focus is a mistake. not just going to -- not going to stop iran achieving the long sought objective of getting deliverable nuclear weapons. >> they say there are no options off the table but no one here is seriously considering attacking iran. senator kirk says the other countries would boost production if oil was unavailable but believe it would take some time. >> live in the north lawn. thank you. security guard in colorado barricaded himself in a room and officials say he was armed with a personal hand gun. he is facing discharge. the base controls all gps satellites and we're told operations have not been suspended. no grapevine so we can bring you rick perry in the center seat.
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use promo code: norisk. plus get this document shredder, free! but only if you act right now. call now! lifelock service guarantee cannot be offered to residents of new york. already, some in congress are trying to undo these automatic spending cuts. my message to them is simple. no. i will veto any effort to get rid of those automatic spending cuts domestic and defense spending. there will be no easy off-ramps on this one.
we need to keep the pressure up to compromise. not turn off the pressure. >> bret: president obama speaking to reporters moments before the show started about the super committee failure. reaction was quick. the democratic leaders, senate majority leader said this in a statement. "democrats were proposed to strike a grand bargain and asking millionaires to pay fair share and we put willingness on paper but republicans never came close to meet us halfway. in absence of balanced plan to reduce the deficit by at least as much, i will oppose any efforts to change or roll back the sequester." they countered the democrats' suggestion of not one, but two good faith republican proposals that was not possible not because republicans wouldn't compromise but democrats would not accept a proposal to expose the size or scope of government. bring in your panel.
bill kristol, juan williams and krauthammer. charles? >> it's remarkable what we heard from the president. the secretary of defense said last week in testimony if sequester goes in effect it will have a devastating effect on the military. endanger the security of the united states. is the president a week later said he will insist, the sequester, the automatic cut in defense. he was awol on this deal. he had no interest in serious outcome. the increase on tax revenue was supposedly one thing that the democrats said they had to have. democrats rejected it. obama wants an issue on which
he can run. he doesn't have any other issue. he can't run on obamacare and cap and trade. he will run on i'm against the 1%. i'm the one who is against the republicans who protect and that is why the failure occurred. >> bret: juan, the president said that the republicans did not budge in his statement. senator dick durbin at one point praised the republicans' proposal, one of them as a break-through moment. that seemed like it was budging. >> this is a proposal that charles referred to. remember senator mcconnell in the senate and john boehner the speaker of the house and the beekeeper, neither said they would support senator toomey's proposal. tush tush indicated he thought it was a break-through.
response was hey, not so quick. don't give away the store. no support coming from the republican side. what you saw today from president obama is the suggestion he will portray this as the republicans protecting the top 2% from any tax increase. >> bret: do you buy that the democrats were that united in their own proposal going forward in this super committee? >> where was the democratic proposal? house republicans passed a budget, paul ryan budget. senator toomey put out a proposal, the details that would have gotten $1.2 trillion. is there a democratic proposal that we have seen? where is president obama? he is up there, terrible, irresponsible. where is his proposal? i didn't notice him coming back from asia or even before asia and say here is $1
>> bret: welcome to our center seat tonight the governor of texas and currently a candidate for the republican presidential nomination, rick perry. welcome. >> thank you. good to be with you. all of you. >> bret: thank you for coming. first to the breaking news today about the failure of the super committee. your reaction to this and what it means? this is what a lot of us expected when you -- being the president of the united states, you've got to lead. this president has not led on this issue. we know what the problem is. spend toog much money and tax taos much. it's one of the reasons i laid out that 20% flat tax to get americans working again. that's what has always been about. oh do we get americans back
working again? this president, if you think about it, he was looking for someone to blame. he didn't want to be in a leadership position. this was a contrived opportunity for him to pitch this over to congress. now congress falled up. that is a reason i am calling for a part-time individualture. americans are fed up with washington being so broke-down and corrosive they can't fix anything. americans are ready to throw it away, cut the pay in half. and cut the staff in half. they don't have a balanced budget on the way to me by 2020, cut the pay in half again. >> bret: governor, i ask every candidate that comes to the center seat about the path they will take to the nomination. the latest national polls and average polls have you at #.2%.
as you scroll through you can see the number. in iowa, you are down to 6%. in new hampshire you are at 2%. how do you get the nomination? where do you have to win? is iowa crucial? >> all the states are crucial. you go in and you talk about the plan and the vision. i got in late. eonce that. we laid out a policy on how to get americans back working a month ago. the first of it. we laid out a second part of it with the 40% flat tax and spending cut and balancing the budget. then last week, we laid out our opportunity to talk about how to restructure washington, d.c., to deconstruct the part-time legislature. some say you can't do that. but a lot of states work well. in my home state, 140 gays ever -- 140 days,we get the bus.
legislators have the jobs back home that they go work at and stay with the constituents and we make it work. >> bret: first or second in iowa? >> either way. >> bret: okay. bill? >> governor, speaking of the legislators failing you reacted terribly to the reflation about the senators in congressmen selling stocks and seeming to use the insider knowledge to profit themselves. what would you do about that? >> i think you first pass a piece of legislation to say it's illegal. any congress or senator who used the insider information. if you did it, you would go to prison. i mean, that is the fact. >> that would be bad. [ laughter ] >> that would be bad if a congressman or a senator. any of these individuals that are sitting there today, i challenge nancy pelosi to come debate. she said she was busy. she wants to forget what she has done and how she profited by this.
she needs to give the information to the sikh. let them investigate. if a member of congress or senator used their position to profit. they need to go. >> member of the texas individualture buying stock. do you have laws at the state level? >> absolutely. we have transparency in the stit of texas. no one should use that -- in the state of texas you'd be investigated by the travis county district attorney's office. i guarantee you. >> bret: charles? >> one of the virtues of your flat tax is that of any flat tax is that it eliminates all the loopholes. it's simple. you offer the taxpayer a choice between 20% or the old corrupt system. doesn't it leave in place the loopholes, follow the opportunity for sharp lawyers and accountants and all of the possible corruption in the old system. it doesn't actually cure it.
>> the reason we leigh it in place, there are a few folks throughout to set the business model up to use the old system. the vast majority of people. i'm glad you brought up that. there it is. >> you just happen to have that. >> that is it. you fill that out. take deduction for the local taxestant mortgage. get rid of the cap gains. dividend tax. take 20%. even tim geithner will get his in on time. >> if the reason not to upset people with the plan why don't you have a sunset provision? >> a good idea and one worth. >> exploring? >> yes, sir. >> would you endorse it now? >> let me explore it more. it does make sense.
to give period of time. we did the same thing with the offshore dollars. at one point -- the 1 1.6 trillion offshore that is taxed at 35%. one year at 5.25%, what the economic expert said was a good rate to bring the money in and create jobs. american chamber of commerce said it would create 3.5 million jobs bringing the money back in. there is an example of how we celt a sunset. >> bret: juan? >> governor, a lot of conservatives got upset with you after you said that giving in-state tuition to children of illegal immigrants was a good idea. people who didn't support it no heart was the quote. >> should have gotten upset. my wife said it was insulting
thing to say. >> stick with the idea. is it the case that republican party is hostile to immigrants? >> not at all. if you think about the state i represent and our population as approaching 37-38%. hispanic. my brother-in-law in hispanic. mexico is our number one trading partner. we understand the important issue is securing the border. we know that the border is being used for a host of illegal activities. up to and including iran working with the zeta cartel. to come in the country and commit an act, to murder a saudi diplomat. that border has to be secure. >> most legal immigrants is not involved with illegal drugs or terrorism. >> your attitude in that debate suggested that you saw and i think the texas chamber of commerce saw an important point in giving education to
children in their state. >> we have as governors to make decisions and that's a decision that texas made. what i said about people that didn't agree with me was, that was my error. >> do you think. >> my error was in saying that people didn't agree with what we did in texas. it was incorrect. insult to them. i should haven't said it. i do respect individuals across the country and their opinion about that. in texas, that's what we decided to do. we're forced to do it because the federal government is in abject failure securing the border. i know how to secure the border. put the boots on the ground. you put the strategic fencing in place. aviation asset in the air. in 12 months after i'm sworn in as president of the united states the board her be shut down and secure. >> if republicans took a more moderate position wouldn't it help them with the hispanic vote that is critical to
party? >> i think the hispanic voter in america wants to see the border secure. they don't want terrorists using their border -- well, that's my point. to try to say somehow or another that the hispanic voter is different than anybody else, they're not. they want jobs. there are 14 million people around the kitchen table tonight watching the show and asking the question, who is it most those candidates that is going to get this economy going? i think a lot of them would love to see a part-time legislature. >> bret: we hope 14 million are watching tonight. we really do. thank you. we'll turn to another panel after a quick time-out. stay with us.
>> bret: we're back with our panel and our guest governor rick perry. now to foreign policy. charles? >> governor, the middle east, first libya and now syria. it's take an turn from the peaceful demonstrations to the free syrian army. would you have the united nationunitedstates support the d resistance in syria? >> let me back up and say we missed great opportunities. iran is the real issue in the middle east from my perspective. we had the opportunity in 2009 with the green revolution to use the economic sanctions, to use sanctions over covert. we had an opportunity to help the citizens overthrow the impressive regime. and stem them in their quest to get nuclear weapon in 2009. we failed nighyevty. the president and the administration was talking to syria and the iranians.
the point should always be when there is this type of oppressive regime working with iran in that area hostile to our oldest friend and longest serving democracy israel. we need to put everything on the table there. should not be anything set aside that keeps the pressure off the individuals. >> we can do what we did in libya. fly over syria -- if you were the president today would you advocate we do that to syria? >> absolutely. absolutely. >> bret: bill? >> you'd do that i suppose unilaterally without waiting for the u.n. to approve it? >> i would not spend a lot of time waiting for the u.n.
i will tell you that my position on the u.n. is if they continue to go around as they, the palestinians state tried to do, we need to sit down as a country and have a conversation about is the continued funding of the united nations in the best interest of america. i have questions about whether or not we get in my whole foreign aid. i'd start at zero on every country and prove up why we're sending that money. the u.n. in particular, all too often is not acting in america's best interest. that has to be the first question anytime. >> should you ask questions about getting funds to u.n.. >> absolutely. it's a conversation worth having. the idea that somehow or another we just need to write a blank check and say here because we've always done that is not acceptable.
we have a country with an economic crisis on its hands. americans out there without a job. they're watching billions of dollars. you think about the billion of dollars for china, country with incredible moral issues. there are 35,000 babies a day and we are sending them billions of dollars in aid. why? >> because stick with the foreign aid question. zero it out. president perry sitting next to me and i say president perry, name the three -- well, two, country that you would 0 owe out right now? which countries would you eliminate all foreign aid for? >> i would cut out foreign aid to china. that's one of the countries -- we have an negotiation and i just say listen. listen the foreign aid that is going -- i think -- i can't remember how many $30 million that is going to china.
going to china, and i understand humanitarian. when you have a country that is engaged in the type of moral dilemma that -- the government is forcing people to abort the children. >> what other country. >> you know, i would say, i don't know whether venezuela is getting any money or not. we shouldn't send them in foreign aid. sending them plenty in foreign aid because of the petro dollars going down there. that is a reason we need to be independent in this country so no more dollars go to the countries that are not working for america's best interest. >> zero out pakistan? >> listen, pakistan is a -- every country to start. >> do you end up with zero? >> i can't say i know that answer. it's a complex issue because the military and the secret
police there and -- this isn't a country easily working with. any country that has nuclear weapons in that part of the world with india and afghanistan. we may have some leverage. with those countrys working together. >> argument for keeping foreign aid. you are speaking against the national. >> i'm not against foreign aid. i'm just against testing it and making sure that it's spent properly. look, israel is a great example. israel, we started out giving foreign aid to israel. it's a country that's successful. i don't get foreign aid confused with strategic military dollars. i don't get confused about it going to ally. foreign aid to israel, they are doing their own foreign aid now.
that's what we should do, putting american companies in the country instead of writing blank check. to help create infrastructure or what have you. >> bret: governor, you are looking for one or two in iowa, is south carolina really important? >> oh, yeah. south carolina is important. >> bret: you think you can get the nomination? >> yes, sir, absolutely. people are looking for individual division and looking for somebody with the executive governing experience. i'm the only person on the stage who is actually run the 13th largest economy in the world. for the last ten years. >> bret: governor, thank you for your time today. >> honor to be with you. >> we'll stand by one second and we'll see some of governor perry's remarks that may have
>> bret: finally tonight. tv ads. this one from bad lip reading.com may not make the cut brild me a small dog house. i'm bored by famine. i can't wait for cinnabon. hot yellow kool-aid and save a pretzel for the gas jets. [ applause ] >> thank you. some defy the titans. ice cream. you can borrow my cd. not one every day. you can try my cd. they are not yours. and you don't have to take any of them. [ applause ] >> bret: gas jet. >> that's awesome. >> new slogan. >> i don't know whether you will see it in iowa or not. >> bret: governor, thanks so much. >> you are welcome. >> thanks for inviting us into